Question
Famas Llamas has a WACC of 10.2 percent. The companys cost of equity is 12 percent, and its pretax cost of debt is 7.1 percent.
Famas Llamas has a WACC of 10.2 percent. The companys cost of equity is 12 percent, and its pretax cost of debt is 7.1 percent. The tax rate is 24 percent. What is the companys target debt-equity ratio? Note: Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.
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Financial Management For Decision Makers
Authors: Peter Atrill
8th Edition
129213433X, 978-1292134338
